----

----

| [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                   |
|--------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |   |
|                                                                                                                     | For the quarterly period ended September 30, 2010 |
|                                                                                                                     |   |
| [   ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|                                                                                                                     | For the transition period from __________ to __________ |

| 000-17232                                                                                                                                                                                                                                                                                                           |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Commission File Number                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                |
| FACT CORPORATION                                                                                                                                                                                                                                                                                                    |
| (Exact name of registrant as specified in its charter)                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                |   |
| Colorado                                                                                                                                                                                                                                                                                                            | 84-0888594 |
| (State or other jurisdiction of incorporation or organization)                                                                                                                                                                                                                                                      | (I.R.S. Employer Identification No.) |
|                                                                                                                                                                                                                                                                                                                |   |
| 5614E Burbank Road SE, Calgary, Alberta, Canada                                                                                                                                                                                                                                                                     | T2H 1Z4 |
| (Address of principal executive offices)                                                                                                                                                                                                                                                                            | (Zip Code) |
|                                                                                                                                                                                                                                                                                                                |
|                                                   403-693-8004 |
| (Registrant’s  telephone number, including area code)                                                                                                                                                                                                                                               |
| 1530 9th Avenue SE, Calgary, Alberta T2G 0T7                                                                                                                                                                                                                                                                        |
| (Former name, former address and former fiscal year, if changed since last report)                                                                                                                                                                                                                                  |

|   | Yes [X]  No [  ] |
|--------|--------------------------------------|
|   | Yes [X]  No [  ] |

|   | Yes [  ]  No [  ] |
|--------|-------------------------------------------------|

| Large accelerated filer                       | [  ] | Accelerated filer         | [  ] |
|-----------------------------------------------|----------------|---------------------------|----------------|
|                                          |           |                      |           |
| Non-accelerated filer                         | [  ] | Smaller reporting company | [X]            |
| (Do not check if a smaller reporting company) |           |                      |           |

----

|   | Yes [  ] No [X] |
|--------|---------------------------|

|   | Yes [  ]  No [  ] |
|--------|-------------------------------------------------|

| 19,237,151 common shares outstanding as of November 19, 2010.                                                                         |
|---------------------------------------------------------------------------------------------------------------------------------------|
| (Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.) |

----

|     |                                                                                        | Page     |
|----------|---------------------------------------------------------------------------------------------|----------|
|     | PART I – Financial Information                                                        |     |
| Item 1.  | Financial Statements                                                                        | 2        |
| Item 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 3        |
| Item 3.  | Quantitative and Qualitative Disclosures About Market Risk                                  | 5        |
| Item 4T. | Controls and Procedures                                                                     | 5        |
|     |                                                                                        |     |
|     | PART II – Other Information                                                           |     |
| Item 1.  | Legal Proceedings                                                                           |   6 |
| Item 1A. | Risk Factors                                                                                |   6 |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                                 |   6 |
| Item 3.  | Defaults Upon Senior Securities                                                             |   7 |
| Item 4.  | (Removed and Reserved)                                                                      |   7 |
| Item 5.  | Other Information                                                                           |   7 |
| Item 6.  | Exhibits                                                                                    |   8 |
|     | Signatures                                                                                  |   9 |

----

|                                                         | Page        |
|--------------------------------------------------------------|-------------|
| Unaudited Consolidated Financial Statements                  | F-1         |
| Consolidated Balance Sheets                                  | F-2         |
| Consolidated Statements of Operations and Comprehensive Loss | F-3         |
| Consolidated Statements of Cash Flows                        | F-4         |
| Notes to Unaudited Consolidated Financial Statements         | F-5 to F-10 |

----

----

| ASSETS                                                                                                                                                                            |   | September 30,2010 |        |   | December 31,2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|--------|------------------|--------|
| Current Assets                                                                                                                                                                    |   |              |        |   |             |   |
| Cash                                                                                                                                                                              |   | $                 | 32,169      |   |             | $      | 45,736 |   |
| Inventory                                                                                                                                                                         |   |              | 139,721     |   |             |   | 3,193 |   |
| Accounts receivable                                                                                                                                                               |   |              | 68,438      |   |             |   | 133,915 |   |
| Prepaid expense                                                                                                                                                                   |   |              | 8,709       |   |             |   | 4,081 |   |
| Total Current Assets                                                                                                                                                              |   |              | 249,037     |   |             |   | 186,925 |   |
|                                                                                                                                                                              |   |              |        |   |             |   |   |   |
| Property and Equipment                                                                                                                                                            |   |              |        |   |             |   |   |   |
| Intellectual property                                                                                                                                                             |   |              | 563,134     |   |             |   | 749,912 |   |
| Real property (net of accumulated depreciation of $1,303 and $1,071)                                                                                                              |   |              | 130         |   |             |   | 362 |   |
| Total Property and Equipment                                                                                                                                                      |   |              | 563,264     |   |             |   | 750,274 |   |
| Total Assets                                                                                                                                                                      |   | $                 | 812,301     |   |             | $      | 937,199 |   |
|                                                                                                                                                                              |   |              |        |   |             |   |   |   |
| Liabilities and Stockholders' Deficiency                                                                                                                                          |   |              |        |   |             |   |   |   |
| Current Liabilities                                                                                                                                                               |   |              |        |   |             |   |   |   |
| Accounts payable and accrued liabilities                                                                                                                                          |   | $                 | 651,254     |   |             | $      | 363,673 |   |
| Accounts payable and accrued liabilities (related parties)                                                                                                                        |   |              | 698,780     |   |             |   | 603,451 |   |
| Loan payable (related parties)                                                                                                                                                    |   |              | 56,862      |   |             |   | 6,412 |   |
| Loan payable                                                                                                                                                                      |   |              | 263,780     |   |             |   | 2,517 |   |
| Current portion of long-term debt and acquisition cost                                                                                                                            |   |              | 206,949     |   |             |   | 168,938 |   |
| Total current liabilities                                                                                                                                                         |   |              | 1,877,625   |   |             |   | 1,144,991 |   |
|                                                                                                                                                                              |   |              |        |   |             |   |   |   |
| Long – Term Liabilities                                                                                                                                                     |   |              |        |   |             |   |   |   |
| 6% Series convertible debenture                                                                                                                                                   |   |              | 306,476     |   |             |   | 302,685 |   |
| 8% Series convertible notes                                                                                                                                                       |   |              | 1,266,646   |   |             |   | 1,254,100 |   |
| Acquisition cost payable                                                                                                                                                          |   |              | 1,170,524   |   |             |   | 1,337,089 |   |
| Total Long – Term Liabilities                                                                                                                                               |   |              | 2,743,646   |   |             |   | 2,893,874 |   |
|                                                                                                                                                                              |   |              |        |   |             |   |   |   |
| Total Liabilities                                                                                                                                                                 |   |              | 4,621,271   |   |             |   | 4,038,865 |   |
|                                                                                                                                                                              |   |              |        |   |             |   |   |   |
| Stockholders' Deficiency                                                                                                                                                          |   |              |        |   |             |   |   |   |
| Class A Common Stock: authorized 100,000,000 shares of no par value; 18,796,328 and 18,706,328 issued and outstanding as at September 30, 2010 and December 31, 2009 respectively |   |              | 23,270,367  |   |             |   | 23,261,326 |   |
| Additional paid in capital                                                                                                                                                        |   |              | 789,604     |   |             |   | 717,563 |   |
| Accumulated other comprehensive income                                                                                                                                            |   |              | 105,509     |   |             |   | 107,852 |   |
| Accumulated deficit                                                                                                                                                               |   |              | (27,974,450 | )      |             |   | (27,188,407 | ) |
| Total Stockholders' Deficiency                                                                                                                                                    |   |              | (3,808,970  | )      |             |   | (3,101,666 | ) |
| Total Liabilities and Stockholders' Deficiency                                                                                                                                    |   | $                 | 812,301     |   |             | $      | 937,199 |   |

----

|                                                         |   | For the three months endedSeptember 30, |       |   | For the nine months endedSeptember 30, |   |
|--------------------------------------------------------------|--------|-----------------------------------------|------------|--------|----------------------------------------|--------|
|                                                         |   | 2010                                    |       |   | 2009                                   |   |   | 2010 |   |   | 2009 |   |
| Revenues                                                     |   |                                    |       |   |                                   |   |   |   |   |   |   |   |
| Functional food premix                                       |   | $                                       | 180,566    |   |                                   | $      | 245,344 |   |   | $ | 557,527 |   |   | $ | 896,578 |   |
| Rental income (net of operating expenses)                    |   |                                    | 4,134      |   |                                   |   | 20,318 |   |   |   | 47,198 |   |   |   | 58,426 |   |
|                                                         |   |                                    | 184,700    |   |                                   |   | 265,662 |   |   |   | 604,725 |   |   |   | 955,004 |   |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Costs of Goods Sold – Functional food premix           |   |                                    | 134,659    |   |                                   |   | 195,366 |   |   |   | 439,599 |   |   |   | 735,584 |   |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Gross Profit                                                 |   |                                    | 50,041     |   |                                   |   | 70,296 |   |   |   | 165,126 |   |   |   | 219,420 |   |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Costs and Expenses                                           |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Legal                                                        |   |                                    | 75         |   |                                   |   | 2,862 |   |   |   | (2,182 | ) |   |   | 41,367 |   |
| Consulting fees                                              |   |                                    | 52,311     |   |                                   |   | 51,262 |   |   |   | 144,466 |   |   |   | 184,384 |   |
| Depreciation and amortization                                |   |                                    | 62,337     |   |                                   |   | 62,332 |   |   |   | 187,010 |   |   |   | 186,984 |   |
| Research and development                                     |   |                                    | 10,944     |   |                                   |   | - |   |   |   | 45,478 |   |   |   | - |   |
| Marketing                                                    |   |                                    | 68,341     |   |                                   |   | - |   |   |   | 80,375 |   |   |   | - |   |
| Other Administrative expenses                                |   |                                    | 136,363    |   |                                   |   | 172,334 |   |   |   | 380,729 |   |   |   | 339,424 |   |
|                                                         |   |                                    | 330,371    |   |                                   |   | 288,790 |   |   |   | 835,876 |   |   |   | 752,159 |   |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) from operations                                       |   |                                    | (280,330   | )      |                                   |   | (218,494 | ) |   |   | (670,750 | ) |   |   | (532,739 | ) |
| Other income and expenses                                    |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Realized gain (loss) on disposal of marketable securities    |   |                                    | -          |   |                                   |   | 16 |   |   |   | - |   |   |   | (16 | ) |
| Loss on debt conversion                                      |   |                                    | -          |   |                                   |   | (22,408 | ) |   |   | - |   |   |   | (22,408 | ) |
| Gain on debt forgiveness                                     |   |                                    | -          |   |                                   |   | - |   |   |   | 12,276 |   |   |   | - |   |
| Interest expense                                             |   |                                    | (44,934    | )      |                                   |   | (31,008 | ) |   |   | (127,569 | ) |   |   | (92,098 | ) |
|                                                         |   |                                    | (44,934    | )      |                                   |   | (53,400 | ) |   |   | (115,293 | ) |   |   | (114,522 | ) |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income taxes                                   |   |                                    | -          |   |                                   |   | - |   |   |   | - |   |   |   | - |   |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net (Loss)                                                   |   | $                                       | (325,264   | )      |                                   | $      | (271,894 | ) |   | $ | (786,043 | ) |   | $ | (647,261 | ) |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net (Loss) per Common Share, basic and diluted               |   | $                                       | (0.02      | )      |                                   | $      | (0.01 | ) |   | $ | (0.04 | ) |   | $ | (0.04 | ) |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted Average Number of Common Shares Used in calculation |   |                                    | 18,796,328 |   |                                   |   | 17,919,154 |   |   |   | 18,794,021 |   |   |   | 17,412,123 |   |
|                                                         |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss                                           |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                     |   | $                                       | (325,264   | )      |                                   | $      | (271,894 | ) |   | $ | (786,043 | ) |   | $ | (647,261 | ) |
| Foreign currency translation adjustment                      |   |                                    | (1,930     | )      |                                   |   | (11,801 | ) |   |   | (2,343 | ) |   |   | (22,436 | ) |
| Comprehensive loss                                           |   | $                                       | (327,194   | )      |                                   | $      | (283,695 | ) |   | $ | (788,386 | ) |   | $ | (669,697 | ) |

----

|                                                                    |   | For the nine months endedSeptember 30, |     |
|-------------------------------------------------------------------------|--------|----------------------------------------|----------|
|                                                                    |   | 2010                                   |     |   | 2009 |   |
| Cash From Operating Activities:                                         |   |                                   |     |   |   |   |
| Net (loss)                                                              |   | $                                      | (786,043 | ) |   | $ | (647,261 | ) |
| Reconciling adjustments                                                 |   |                                   |     |   |   |   |   |   |
| Depreciation, depletion and amortization                                |   |                                   | 187,010  |   |   |   | 186,984 |   |
| Share issued for services                                               |   |                                   | -        |   |   |   | 5,200 |   |
| Accrued interest                                                        |   |                                   | 103,342  |   |   |   | 92,098 |   |
| Loss on conversion of debt                                              |   |                                   | -        |   |   |   | 22,408 |   |
| Amortization of convertible bonds discount                              |   |                                   | 16,337   |   |   |   | - |   |
| Stock based compensation                                                |   |                                   | 58,582   |   |   |   | 92,827 |   |
| Realized loss on securities                                             |   |                                   | -        |   |   |   | 16 |   |
| Changes in operating assets and liabilities                             |   |                                   |     |   |   |   |   |   |
| Accounts receivable                                                     |   |                                   | 51,137   |   |   |   | 75,079 |   |
| Inventory                                                               |   |                                   | (136,528 | ) |   |   | 86,454 |   |
| Prepaid Expense                                                         |   |                                   | (4,618   | ) |   |   | 1,871 |   |
| Payroll liabilities                                                     |   |                                   | (1,300   | ) |   |   | 3,393 |   |
| Accounts payable and accrued expenses                                   |   |                                   | 299,775  |   |   |   | 34,036 |   |
| Net Cash Flows Used In Operating Activities                             |   |                                   | (212,306 | ) |   |   | (46,895 | ) |
|                                                                    |   |                                   |     |   |   |   |   |   |
| Cash From Financing Activities:                                         |   |                                   |     |   |   |   |   |   |
| Loan proceeds – related party                                     |   |                                   | 48,147   |   |   |   | - |   |
| Loan proceeds                                                           |   |                                   | 257,862  |   |   |   | 46,048 |   |
| Loan repayment                                                          |   |                                   | -        |   |   |   | (100,000 | ) |
| Proceeds from sale of common stock                                      |   |                                   | 22,500   |   |   |   | - |   |
| Reduction to acquisition cost payable                                   |   |                                   | (128,554 | ) |   |   | (115,354 | ) |
| Net Cash Flows Provided By (Used In) Financing Activities               |   |                                   | 199,955  |   |   |   | (169,306 | ) |
|                                                                    |   |                                   |     |   |   |   |   |   |
| Foreign currency translation adjustment                                 |   |                                   | (1,216   | ) |   |   | (3,642 | ) |
|                                                                    |   |                                   |     |   |   |   |   |   |
| Net change in cash and cash equivalents                                 |   |                                   | (13,567  | ) |   |   | (219,843 | ) |
| Cash at beginning of period                                             |   |                                   | 45,736   |   |   |   | 230,341 |   |
| Cash at end of period                                                   |   | $                                      | 32,169   |   |   | $ | 10,498 |   |
|                                                                    |   |                                   |     |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                       |   |                                   |     |   |   |   |   |   |
| Interest paid                                                           |   | $                                      | -        |   |   | $ | - |   |
| Income taxes paid (refund)                                              |   | $                                      | -        |   |   | $ | - |   |
|                                                                    |   |                                   |     |   |   |   |   |   |
| Supplemental non-cash financing activity:                               |   |                                   |     |   |   |   |   |   |
| Conversion of loan payable and accrued interest to 6% convertible notes |   | $                                      | -        |   |   | $ | 317,517 |   |
| Conversion of loan payable and accrued interest to 8% convertible notes |   |                                   | -        |   |   |   | 1,080,449 |   |
| Conversion of accounts payable to 6% convertible notes                  |   |                                   | -        |   |   |   | 223,723 |   |
| Total:                                                                  |   | $                                      | -        |   |   | $ | 1,621,689 |   |

----

----

|                                          |   | September 30, 2010 |      |   | December 31, 2009 |   |
|-----------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
| 8% unsecured convertible notes, at face value |   | $                  | 1,304,172 |   |              | $      | 1,304,172 |   |
| Less: unamortized discount                    |   |               | (37,526   | )      |              |   | (50,072 | ) |
| Carrying value                                |   | $                  | 1,266,646 |   |              | $      | 1,254,100 |   |

|                          |   | Three months ended September 30, |   |   | Nine months endedSeptember 30, |   |
|-------------------------------|--------|----------------------------------|--------|--------|--------------------------------|--------|
|                          |   | 2010                             |   |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
| Amortization of debt discount |   | $                                | 4,285  |   |                           | $      | - |   |   | $ | 12,546 |   |   | $ | - |   |
| Interest at contractual rate  |   |                             | 27,284 |   |                           |   | 11,720 |   |   |   | 80,962 |   |   |   | 11,720 |   |
|                          |   | $                                | 31,569 |   |                           | $      | 11,720 |   |   | $ | 93,508 |   |   | $ | 11,720 |   |

----

|                                            |   | September 30, 2010 |    |   | December 31, 2009 |   |
|-------------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
| 6% secured convertible debenture, at face value |   | $                  | 317,517 |   |              | $      | 317,517 |   |
| Less: unamortized discount                      |   |               | (11,041 | )      |              |   | (14,832 | ) |
| Carrying value                                  |   | $                  | 306,476 |   |              | $      | 302,685 |   |

|                          |   | Three months ended September 30, |   |   | Nine months ended September 30, |   |
|-------------------------------|--------|----------------------------------|--------|--------|---------------------------------|--------|
|                          |   | 2010                             |   |   | 2009                            |   |   | 2010 |   |   | 2009 |   |
| Amortization of debt discount |   | $                                | 1,291  |   |                            | $      | - |   |   | $ | 3,791 |   |   | $ | - |   |
| Interest at contractual rate  |   |                             | 4,802  |   |                            |   | 2,140 |   |   |   | 14,249 |   |   |   | 2,140 |   |
|                          |   | $                                | 6,093  |   |                            | $      | 2,140 |   |   | $ | 18,040 |   |   | $ | 2,140 |   |

|                              |   | September 30, 2010 |    |   | December 31, 2009 |   |
|-----------------------------------|--------|--------------------|---------|--------|-------------------|--------|
| Accounts payable – trade    |   | $                  | 508,387 |   |              | $      | 305,634 |   |
| Accounts payable – interest |   |               | 133,923 |   |              |   | 38,874 |   |
| Accrued expense                   |   |               | -       |   |              |   | 16,900 |   |
| Payroll liabilities               |   |               | 8,944   |   |              |   | 2,265 |   |
|                              |   | $                  | 651,254 |   |              | $      | 363,673 |   |

----

|                               |   | Class AWarrant |   |   | Class BWarrant |   |
|------------------------------------|--------|----------------|--------|--------|----------------|--------|
| Warrants to purchase common stock: |   |           |   |   |           |   |
|   Strike price           |   | $              | 0.30   |   |           | $      | 0.35 |   |
|   Volatility             |   |           | 177    | %      |           |   | 177 | % |
|   Term (years)           |   |           | 1.00   |   |           |   | 2.00 |   |
|   Risk-free rate         |   |           | 0.40   | %      |           |   | 1.03 | % |
|   Dividends              |   |           | -      |   |           |   | - |   |

|                                    |   | Employee Options |    |   | Non-employee Options |   |      | Weighted Average Exercise Price |   |
|-----------------------------------------|--------|------------------|---------|--------|----------------------|--------|-----------|---------------------------------|--------|
| Options outstanding, December 31, 2009  |   |             | 110,000 |   |                 |   | 1,850,000 |                            |   |   | 0.335 |   |
| Options granted:                        |   |             |    |   |                 |   |      |                            |   |   |   |   |
| Employees                               |   |             | 350,000 |   |                 |   | -         |                            |   |   | 0.275 |   |
| Non-employees                           |   |             | -       |   |                 |   | -         |                            |   |   | - |   |
| Options exercised                       |   |             | -       |   |                 |   | -         |                            |   |   | - |   |
| Options canceled                        |   |             | 110,000 |   |                 |   | -         |                            |   |   | 0.35 |   |
| Options expired                         |   |             | -       |   |                 |   | -         |                            |   |   | - |   |
| Options Outstanding, September 30, 2010 |   |             | 350,000 |   |                 |   | 1,850,000 |                            |   |   | 0.359 |   |

----

| (i)   | Transactions with International Securities Group Inc. |
|-----------------|-------------------------------------------------------|

| (ii)   | Transactions with Directors and Officers |
|------------------|------------------------------------------|

| (iii)   | Transactions with others |
|-------------------|--------------------------|

----

----

----

|                                    |   | Nine months ended September 30, |    |   |   |   |
|-----------------------------------------|--------|---------------------------------|---------|--------|--------|--------|
|                                    |   | 2010                            |    |   | 2009   |   |   | Change |   |
| Net revenue from Functional food premix |   | $                               | 557,527 |   |   | $      | 896,578 |   |   |   | (37.82 | %) |
| Gross Profit on Functional food premix  |   | $                               | 117,928 |   |   | $      | 160,994 |   |   |   | (26.75 | %) |
| Gross Profit Rate                       |   |                            | 21.15   | %      |   |   | 17.96 | % |   |   | 17.76 | % |

----

| Off- Balance Sheet Arrangements |
|---------------------------------|

----

----

----

| Number                                   | Description                                                                                                                  | Reference                                                                                                                                                                    |
|------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1(i)                                   | Articles of Incorporation, as amended                                                                                        | Incorporated by reference to the Exhibits previously filed with Capital Reserve Corporation’s Annual Report on Form 10-KSB for the fiscal year ended December 31, 1990 |
| 3.1(ii)                                  | Articles of Amendment to Articles of Incorporation, filed with the State of Colorado Secretary of State on November 26, 2001 | Incorporated by reference to the Exhibits previously filed with FACT Corporation’s Annual Report for Form 10-KSB for the fiscal year ended December 31, 2002           |
| 3.1(iii)                                 | Articles of Amendment to Articles of Incorporation, filed with the State of Colorado Secretary of State on February 8, 2002  | Incorporated by reference to the Exhibits previously filed with FACT Corporation’s Annual Report for Form 10-KSB for the fiscal year ended December 31, 2002           |
| 3.2                                      | Amended Bylaws                                                                                                               | Incorporated by reference to the Exhibits previously filed with Capital Reserve Corporation’s Annual Report on Form 10-KSB for the fiscal year ended December 31, 1994 |
| 10.1                                     | 2008 Stock Option and Stock Award Plan                                                                                       | Incorporated by reference to the Exhibits previously filed with FACT Corporation’s Definitive 14C on August 22, 2008                                                   |
| 31.1                                     | Section 302 Certification - Principal Executive Officer                                                                      | Filed herewith                                                                                                                                                               |
| 31.2                                     | Section 302 Certification - Principal Financial Officer                                                                      | Filed herewith                                                                                                                                                               |
| 32.1                                     | Certification Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002        | Filed herewith                                                                                                                                                               |
| 32.2       | Certification Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002        | Filed herewith                                                                                                                                                               |

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|   |              | FACT CORPORATION |
|--------|-------------------|------------------|
|   |              |             |   |
| Date:  | November 19, 2010 | By:              | /s/ Jacqueline Danforth |
|   |              | Name:            | Jacqueline R. Danforth |
|   |              | Title:           | Chief Executive Officer, President (Principal Executive Officer) |
|   |              |             |   |
| Date:  | November 19, 2010 | By:              | /s/ Jacqueline Tucker |
|   |              | Name:            | Jacqueline Tucker |
|   |              | Title:           | Chief Financial Officer (Principal Accounting Officer) |
|   |              |             |   |

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